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103 Safety Fundamentals<br />

Operational Risk Management Terms:<br />

Hazard - A condition with the potential to cause personal injury or<br />

death, property damage or mission degradation.<br />

Risk - An expression of possible loss in terms of severity and<br />

probability.<br />

Risk Assessment - The process of detecting hazards and assessing<br />

associated risks.<br />

Operational Risk Management (ORM) - The process of dealing<br />

with risk associated with military operations, which includes risk<br />

assessment, risk decision making and implementation of effective<br />

risk controls.<br />

103.2 Explain the following as they apply to ORM.<br />

Identifying hazards<br />

Begin with an outline or chart of the major steps in the operation (operational<br />

analysis). Next, conduct a Preliminary Hazard Analysis by listing all of the<br />

hazards associated with each step in the operational analysis along with possible<br />

causes for those hazards.<br />

Assessing hazards<br />

For each hazard identified, determine the associated degree of risk in terms of<br />

probability and severity. Although not required, the use of a matrix may be<br />

helpful in assessing hazards.<br />

Making risk decisions<br />

First, develop risk control options. Start with the most serious risk first and select<br />

controls that will reduce the risk to a minimum consistent with mission<br />

accomplishment. With selected controls in place, decide if the benefit of the<br />

operation outweighs the risk. If risk outweighs benefit or if assistance is required<br />

to implement controls, communicate with higher authority in the chain of<br />

command.<br />

Implementing controls<br />

The following measures can be used to eliminate hazards or reduce the degree of<br />

risk. These are listed by order of preference:<br />

o Administrative Controls - Controls that reduce risks through specific<br />

administrative actions, such as:<br />

Providing suitable warnings, markings, placards, signs, and<br />

notices.<br />

Establishing written policies, programs instructions and <strong>standard</strong><br />

operating procedures (SOP).<br />

103-2

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